The Play Of The Day
May 10, 2000
8:55 AM EST
NASDAQ OUTLOOK TODAY: "3,620.00 May = 3,221.00!" NASDAQ SHOULD TEST 3221.00 TODAY! CLOSE 3321.00 or higher bounce back 3,496.00
The NASDAQ went under 3,550.00 yesterday and had to clear and hold 3615.00 the high on 4/14/00 to stay away from a test of 3,221.00 range. The NASDAQ looked to do it for a while as it bounced off 3540.00 and went as high as 3620.00 late in the day. However it was not able to hold it as the likes of CSCO went up almost 2.00 on the move of 3540.00 to 3,620.00. However the Composite lost 3,600.00 then 3,592.00 another key area and then 3590 was lost to close at 3585.00.
THE ROAD FROM "3982.00 - 3221.00!"
4009.00 (DOUBLE TOP)
3982.00 10 day high 2 high off 3221.00
3979.00 ( the hidden number to find 3221
3909.00 (NASDAQ 100 point buffer under 4009.00
3,851.00 the first high off 3,221
3592.00 low off 3982.00 1st bounce
3540.00 yesterdays low
3620.00 bounce back yesterday high
3885.00 yesterday's close
3816.00 bounce off 3592.00
3375.00 NASDAQ first bounce on 4/14
3265.00 NASDAQ low on 4/14
3321.00 NASDAQ close and double bottom DEC 1, and 2 1999
3,221.00 200 day low
THE NEW NUMBERS:
390+ 276 = 666
3982-666= 3316.00 -89=3227 ( PLUS MINUS 5 points)
NASDAQ the off these numbers can go no higher then 3635.00 before it hits 3,221.00 200 day low!
The NASDAQ looks to open much lower today down maybe $100.00 as CSCO loses $60.00 in premarket. The NASDAQ was at 3,450.00 the last time CSCO lost 60.00 as it has today. The low then was $56.67 on 4/17/00 , 4/14 low at 3,227.00 was $55.50. The NASDAQ key stock CSCO may make a run back to no higher then 62.00 today I short the NASDAQ there or 3592.00-3603. I then will be SHORT as the NASDAQ should test that 200 day low perhaps today!
SJ CALLED 3221.00 at 3982.00 THE NASDAQ is now a lot closer to 3221.00 then 4009.00 as he said it would be before MAY 19, 2000 !
Today's Play of The Day is: 3COM Corp. (NASDAQ:COMS) (SHORT)
3COM unloaded the best part of its companythe PALM division and then let it get killed in a bad market. COMS is not much of a company without PALM as part of it. The company may be buying up its stock in the coming months to save it. However like ANCR a day before in its buy out that excitement should end as fast as it began. COMS went as low as 35.00 the day the NASDAQ found its 200 day low of 3,221.00. Once more COMS was unable to break $50.00 and fell 2 day later to under $40.00 the last time the NASDAQ lost 3,600.00. COMS also has a "gap up to fill the exists at under $45.00 from a few days back. With the NASDAQ closing under it yesterday it looks very much like COMS has a better chance to trade under 40.00 then over $50.00.
KEY INDICATORS: COMS (SHORT)
Sell Short Area: $45.50-$47.00 ( or may use a sell short area of $1.1250 higher then today's open)
Buy Stop: $51.00
Time Frame: 1-2 DAYS
Type of Trade: Swing Trade
COMS BUY AREA ON BOTTOM:
Buy Area: $37.50-$40.00
Sell Stop: $33.00
Time Frame: May 22, 2000
"SJ'S FAV STOCK TO PLAY!" (NASDAQ:JDSU)
JDSU I gotta call again today as it lost an area yesterday that sets it up now to test the 2 lows it had in mid April 2,000 as the NASDAQ found 3,221.00 on 4/17, and 3,345 on 4/24. JDSU lost $82.75 a KEY AREA to hold as it the day it hit its 15 day low of 74.31250 it went to as high as 83.00 that day. So losing $83.00 was key as it traded under it as the NASDAQ lost 3,550.00yesterday going as low as 3,540.00. JDSU loses 83.00 today it should indeed drop back to 74.50 or so at least as JDSU has tested that under 75.00 area everytime it has lost 83.00 over the past 30 days.
KEY INDICATORS: (SHORT JDSU)
Sell Short: $84.43750-$83.50
Buy Stop: $88.50
Time Frame: before May 19, 2000
Buy Area: under $75.00
Sell Stop: $69.00
Time Frame: After May 19, 2000
RUN THE OPTIONS (JDSU)
JDSU on WAY DOWN
The May $75.00 PUTS
JDSU at the Bottom:
The JDSU June $80.00's
"SAGO'S CALL TODAY!:"
BONUS PLAY #1 Zomax Optical Media Inc. (NASDAQNM: ZOMX)
Zomax Optical Media Inc. is a leading outsource provider of multimedia services to a variety of customers, including software publishers, computer manufacturers, book publishers, independent record labels, marketing groups and data base suppliers. The Company's primary customers include companies such as Microsoft Corp., Novell Inc., Hewlett Packard and Gateway. Outsource services provided by Zomax include front-end marketing programs (program management, call center operations, financial services, fulfillment and information systems), graphic design, print management, compact disc and digital versatile disc mastering, CD, DVD, diskette and cassette replication, printing, packaging, warehousing and inventory management, fulfillment and distribution, and returned merchandise authorization (RMA) processing services.
Stock Fans, looking at my "Fastest Growing Naz list" for today's play and Zomax is way up on the list. The stock recently split and sold off. But in yesterdays down market the stock held strong for a nice gain of 18% on almost double average volume. Zomax sports a 82% growth rate. It is 42.8% off of its 52 week high. Earnings for the last 4 quarters with most recent first, +217%, +750%, +667%, +275%. The MACD and Stochastic timing indicators look great for an entry. Looking to take a 1/3 to 1/2 position on morning dip and add on strength or weakness.
KEY INDICATORS: ZOMX
Buy Area:$18.00 to $18.75
TARGET:$20.63 to $21.56
Time Frame: 3 to 7 days
Type of Trade: Swing Trade
Daytrade for $.50 - $1.50 scalps. Average daily range $2.73
Bonus Play #2 eBAY (NASDAQ:EBAY)
eBAY reported much better then expected earnings about 10 day ago and gapped up to $160.00 or so form a close of $155.00 on a 2 for 1 split anouncement, and increased revenue, and growth. Since that time eBAY has been hit hard and yesterday went to under $120.00 yesterday going as low as $117.18750 for the first time since Jan 3rd, 2,000 when it hit a low of $117.3750. The fact that eBAY boke that low on Jan 3rd, 2000 means now that it should lose that number and go to its low of mid Sept 1999 where it had a low of $115.8750 and a high of $134.00 with a close of $133.50. eBAY appears to be a great buy under $117.00 in the next few days as the NASDAQ sets up to retest April 17, 2000 low of 3,221.00 where eBAY traded at $132.00. eBAY actually went lower when the MSFT break up news hit taking it under $130.00 to a low of $125.68750. eBAY should hit bottom at 115.00 or so and should hold $110.00 in any market over 3,000. For the last time eBAY traded under $110.00 the NASDAQ was barley over 2,600.00.
(*eBAY SHORT off the $120.00-$118.00 AREA today!)
KEY INDICATORS: eBAY
Buy Area: $117.00-$115.00
Sell Stop $109.00
Time Frame: By May 22, 2000
RUN THE OPTIONS: eBAY
The June 140.00's "out of money"
The June 130.00's ---
STOCKS ON OUR SCREENS TODAY:
AOL- It has a gap to fill in at $49.50-$52.50. The bottom may come when AOL fills in and test the low of $48.18750 its 200 day low.
WINK- Should get hit
VRIO- It can't hold up in this market DOWN
VRTL- It could go under $14.00
LPTHA- It may see $16.00
GWRX- It may drop to under $12.00
SCII- It may go under $14.00
PWAV - It should find 110.00 soon
YHOO- Under $106.00 its a must buy
ATHM- It may see $15.93750 before $22.00 again ATHM a buy under $16.00 today
More to come.....
Have a great day!
and BigPlayStocks.com TEAM OF PRO TRADERS